DOJ awards $1.96M contract for wireless communications equipment to Persistent Systems LLC

Contract Overview

Contract Amount: $1,964,178 ($2.0M)

Contractor: Persistent Systems LLC

Awarding Agency: Department of Justice

Start Date: 2026-01-08

End Date: 2026-06-01

Contract Duration: 144 days

Daily Burn Rate: $13.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PERSISTENT SYSTEMS

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10001

State: New York Government Spending

Plain-Language Summary

Department of Justice obligated $2.0 million to PERSISTENT SYSTEMS LLC for work described as: PERSISTENT SYSTEMS Key points: 1. Contract value represents a significant investment in specialized communication technology. 2. Competition was open after exclusion of sources, suggesting a potentially narrowed but still competitive field. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Delivery order structure allows for phased deployment and payment. 5. Contract duration of 144 days indicates a focused, short-term requirement. 6. The award to a single vendor warrants scrutiny of the procurement process and justification for source exclusion.

Value Assessment

Rating: fair

The contract value of $1.96 million for wireless communications equipment appears moderate for a federal procurement of this nature. Benchmarking against similar contracts is challenging without more specific details on the equipment's capabilities and quantity. However, the firm fixed-price structure suggests an effort to control costs. The award amount relative to the duration (144 days) implies a substantial per-day expenditure, which warrants further investigation into the specific services or equipment being procured.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, certain sources were excluded prior to the solicitation. The specific reasons for this exclusion are critical to understanding the true level of competition. If the exclusion was justified and well-documented, it may still have led to a competitive outcome among the remaining eligible bidders. However, a limited number of bidders resulting from source exclusion could potentially impact price discovery and lead to higher costs.

Taxpayer Impact: The exclusion of sources, even if justified, limits the pool of potential offerors. This could mean taxpayers are not benefiting from the lowest possible price that might have been achieved with broader competition. Transparency around the exclusion criteria is essential for taxpayer confidence.

Public Impact

The Federal Bureau of Investigation (FBI) is the primary beneficiary, likely enhancing its operational capabilities. The contract will deliver specialized wireless communications equipment, crucial for law enforcement and intelligence gathering. The geographic impact is likely focused on FBI operations within New York, where the contractor is located. Workforce implications are minimal, as this appears to be a procurement of goods rather than services requiring significant labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Justification for exclusion of sources needs thorough review to ensure fair competition.
Potential for limited vendor pool to inflate pricing.
Need to confirm equipment specifications meet actual operational needs without over-specification.

Positive Signals

Firm fixed-price contract mitigates budget risk.
Delivery order mechanism allows for controlled spending.
Award to a known entity (Persistent Systems LLC) may indicate prior positive performance.

Sector Analysis

The wireless communications equipment sector is a vital component of national security and law enforcement technology. This contract falls within the broader Information Technology and Defense sectors, specifically focusing on specialized communication hardware. The market for such equipment is often characterized by high barriers to entry due to technological complexity and security requirements. Comparable spending benchmarks would depend heavily on the specific type and quantity of equipment, but federal agencies frequently invest in advanced communication systems to maintain operational superiority.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Furthermore, there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary focus was on acquiring specialized equipment, and opportunities for small business participation through subcontracting may be limited unless the prime contractor voluntarily engages them.

Oversight & Accountability

Oversight for this contract will primarily reside with the Federal Bureau of Investigation (FBI) and the Department of Justice (DOJ). The firm fixed-price nature provides some cost control. Transparency regarding the 'exclusion of sources' justification is key. The contract's performance will be monitored against delivery schedules and equipment specifications. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

FBI Communications Equipment Procurement
DOJ Wireless Technology Modernization
Federal Law Enforcement Technology Grants
Department of Justice Information Technology Services

Risk Flags

Potential for limited competition due to source exclusion.
Need for clear justification of excluded sources.
Risk of vendor lock-in for critical communication technology.
Ensuring equipment meets evolving operational requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $2.0 million to PERSISTENT SYSTEMS LLC. PERSISTENT SYSTEMS

Who is the contractor on this award?

The obligated recipient is PERSISTENT SYSTEMS LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $2.0 million.

What is the period of performance?

Start: 2026-01-08. End: 2026-06-01.

What specific wireless communications equipment is being procured under this contract, and what are its intended operational uses for the FBI?

The contract data indicates the North American Industry Classification System (NAICS) code is 334220, which pertains to 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing.' While the specific equipment is not detailed in the provided data, this NAICS code suggests the procurement likely involves advanced radio transmitters, receivers, transceivers, or related components for wireless communication systems. For the FBI, such equipment could be used for secure voice and data transmission, tactical communications in the field, surveillance operations, or establishing robust communication networks in areas with limited infrastructure. The 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing' classification points towards hardware rather than software or services.

What is the justification for the 'exclusion of sources' in this procurement, and how many bidders were considered after this exclusion?

The provided data states the contract type as 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This procurement method implies that a solicitation was issued, but certain potential sources were deemed ineligible to bid before the competition commenced. The specific reasons for excluding sources are not detailed in the summary data. Typically, such exclusions might be based on factors like national security concerns, proprietary technology limitations, or specific security clearance requirements that only a subset of vendors can meet. To fully assess the competition, one would need to review the official justification documents (e.g., a Justification and Approval document) filed with the contract award. Without this, it's impossible to determine if the exclusion was warranted or if it unduly limited competition, potentially impacting the final price paid by taxpayers.

How does the contract value of $1.96 million compare to typical spending on similar wireless communication equipment by federal agencies?

Comparing the $1.96 million contract value requires understanding the specific nature of the wireless communication equipment. If this procurement is for highly specialized, secure, or advanced tactical communication systems, the value could be considered reasonable or even low, depending on the quantity and capabilities. Conversely, if it's for more standard communication hardware, the value might be on the higher side, especially given the relatively short delivery period (ending June 1, 2026). Federal agencies, particularly law enforcement and intelligence bodies like the FBI, often procure sophisticated equipment that commands premium pricing due to R&D, security certifications, and specific performance requirements. A thorough benchmark would involve analyzing recent awards for similar equipment specifications, quantities, and intended use cases across agencies like the Department of Defense, DHS, and other federal law enforcement entities.

What are the potential risks associated with awarding a contract for critical communication equipment to a single vendor, even if competition was initially open?

Awarding critical communication equipment to a single vendor, even after an 'open competition after exclusion of sources,' carries several risks. Firstly, it limits the government's leverage in future negotiations for sustainment, upgrades, or additional equipment, potentially leading to higher long-term costs. Secondly, reliance on a single vendor can create supply chain vulnerabilities; if the vendor experiences production issues, financial instability, or goes out of business, the government's operational continuity could be jeopardized. Thirdly, the exclusion of other potential sources, if not rigorously justified, raises concerns about whether the government secured the best possible value. Continuous monitoring of the vendor's performance and market dynamics is crucial to mitigate these risks.

What is the track record of Persistent Systems LLC in fulfilling federal contracts, particularly for the FBI or similar agencies?

Persistent Systems LLC has a history of engaging with federal agencies, including defense and law enforcement. Their specialization often lies in tactical networking, mobile ad-hoc networking (MANET) radios, and related communication solutions. Information regarding their past performance on contracts with the FBI or similar agencies would typically be available through federal procurement databases (like SAM.gov or FPDS). A review of their contract history would reveal their success rate in meeting delivery schedules, adhering to technical specifications, and managing contract costs. Positive past performance is often a key factor in award decisions, suggesting that the FBI likely considered Persistent Systems' track record when making this award.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 601 W 26TH ST, NEW YORK, NY, 10001

Business Categories: Category Business, Manufacturer of Goods, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,964,178

Exercised Options: $1,964,178

Current Obligation: $1,964,178

Actual Outlays: $1,798,787

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: 15F06724D0000804

IDV Type: IDC

Timeline